VIET NAM SHOULD EXTEND IMPLEMENTATION OF ECONOMIC SUPPORT PROGRAM INTO NEXT YEAR: WB

As Viet Nam’s economy still faces headwinds, the authorities could consider extending the implementation of the economic support program (2022-2023) into next year, suggested the World Bank (WB).

In its Viet Nam Macro-monitoring November 2023, the WB noted that November data continued to show improvement in economic activities.

According to the bank, following the trend since April 2023, monthly seasonally adjusted Industrial Production Index (IIP) registered a growth rate of 2.7 percent in November compared to the previous month.

Exports and imports of goods continued to improve in response to recovering external demand, increasing by 6.7 percent year-on-year and 5.1 percent year-on-year, respectively.

The increase in exports in November was due to key agriculture products (rice, coffee, fruits and vegetable), electronics (up 20.2 percent), machinery (up 5 percent), shoes and leather products (up 10.9 percent) and furniture (up 23.6 percent).

The growth in imports is closely linked to the recovery of exports, given that imported inputs for production of exports account for 94 percent of total imports.

Cumulative FDI commitment for the 11 months of 2023 continued to increase, reaching US$28.8 billion, 14.8 percent higher than the same period in 2022, despite global uncertainties, reflecting investors' confidence in Viet Nam's economic prospects, highlighted the WB.

Amid the economic slowdown, financial sector vulnerabilities call for continued vigilance while efforts to restore confidence and promote a healthy development of the real estate markets will be key to supporting economic stability in the short term and economic growth in the long term, recommended the WB.

Source: VCCI